Disney layoffs to start this week, Bob Iger says in memo

Bob Iger, CEO, Disney, during CNBC interview, Feb. 9, 2023.

Randy Shropshire | CNBC

Disney will begin layoffs this week, the primary of three rounds before the start of the summer that lead to about 7,000 job cuts, in keeping with a memo sent by Chief Executive Bob Iger.

The cuts are a part of a broader effort to cut back corporate spending and boost free money flow. Disney said last month it plans to chop $5.5 billion in costs, including $3 billion in content spend.

“This week, we start notifying employees whose positions are impacted by the corporate’s workforce reductions,” Iger wrote within the memo, which was obtained by CNBC. “Leaders will likely be communicating the news on to the primary group of impacted employees over the subsequent 4 days. A second, larger round of notifications will occur in April with several thousand more staff reductions, and we expect to begin the ultimate round of notifications before the start of the summer to achieve our 7,000-job goal.”

The layoffs were initially announced in February. The job cuts will likely be cross-company, hitting Disney’s media and distribution division, parks and resorts, and ESPN.

Disney is following the lead of Warner Bros. Discovery and other legacy media corporations which are cutting jobs and spending. Disney has said its streaming business, led by Disney+, Hulu and ESPN+, will stop losing money in 2024. Disney shares are up about 8% this yr after falling 44% last yr.

“We have now made the difficult decision to cut back our overall workforce by roughly 7,000 jobs as a part of a strategic realignment of the corporate, including necessary cost-saving measures essential for making a simpler, coordinated and streamlined approach to our business,” Iger wrote. “For our employees who aren’t impacted, I would like to acknowledge that there’ll little doubt be challenges ahead as we proceed constructing the structures and functions that may enable us to achieve success moving forward.”

Since returning as CEO, Iger has reorganized the corporate and acknowledged that he’d consider selling Hulu. Disney will host its annual shareholder meeting April 3.

Read Iger’s full memo:

Dear Fellow Employees,

As I shared with you in February, now we have made the difficult decision to cut back our overall workforce by roughly 7,000 jobs as a part of a strategic realignment of the corporate, including necessary cost-saving measures essential for making a simpler, coordinated and streamlined approach to our business. Over the past few months, senior leaders have been working closely with HR to evaluate their operational needs, and I would like to present you an update on those efforts.

This week, we start notifying employees whose positions are impacted by the corporate’s workforce reductions. Leaders will likely be communicating the news on to the primary group of impacted employees over the subsequent 4 days. A second, larger round of notifications will occur in April with several thousand more staff reductions, and we expect to begin the ultimate round of notifications before the start of the summer to achieve our 7,000-job goal. 

The difficult reality of many colleagues and friends leaving Disney shouldn’t be something we take flippantly. This company is home to essentially the most talented and dedicated employees on the planet, and so a lot of you bring a lifelong passion for Disney to your work here. That is a part of what makes working at Disney so special. It also makes it all of the more difficult to say goodbye to wonderful people we care about. I would like to supply my sincere thanks and appreciation to each departing worker in your quite a few contributions and your devotion to this beloved company. 

For our employees who aren’t impacted, I would like to acknowledge that there’ll little doubt be challenges ahead as we proceed constructing the structures and functions that may enable us to achieve success moving forward. I ask in your continued understanding and collaboration during this time. 

In tough moments, we should always do what’s required to make sure Disney can proceed delivering exceptional entertainment to audiences and guests around the globe – now, and long into the long run. Please know that our HR partners and leaders are committed to making a supportive and smooth process every step of the best way.

I would like to thank each of you again for all of your many achievements here at The Walt Disney Company. 

Sincerely,

Bob